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Business Associations Keyed to Epstein, 5th Ed.
Sky Cable, LLC v. DIRECTV, Inc.
Citation:
886 F.3d 375 (2018)Facts
Randy Coley operated various businesses providing cable television services. In 2000, Coley, through his company East Coast Cablevision, LLC (ECC), contracted with DIRECTV to provide programming to 168 rooms at the Massanutten Resort in Virginia. By 2011, Coley was receiving payment for services to over 2,500 units but continued to pay DIRECTV only for the original 168 units, fraudulently retaining the excess revenue. After DIRECTV discovered the scheme, it filed cross-claims against Coley and was awarded a $2.3 million judgment. Unable to collect from Coley personally, DIRECTV sought to reverse pierce the corporate veil of three LLCs owned by Coley, including Its Thundertime, LLC (ITT), which held title to various rental properties. Evidence showed Coley was the sole member of ITT and regularly commingled funds between himself and his LLCs, with money flowing freely between them at Coley’s discretion. The district court found the LLCs were alter egos of Coley and allowed reverse veil piercing to make the LLCs co-judgment debtors.
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